🚗Problem

Yield and Structured Products

Yield is one of the core use cases of DeFi. Structured products built on options strategies are among the most effective ways to generate yield from volatility. In traditional markets, strategies such as covered calls and cash-secured puts allow investors to earn income on their assets by selling optionality. These products are used at scale by funds, institutions, and treasuries to generate income while taking advantage of options mechanics to sell higher or buy lower.

Current State in Crypto

In crypto, similar structured products exist but mainly off-chain through OTC desks. These venues are private, require large minimum sizes, long on-boarding and rely on manual processes and trusted intermediaries, introducing significant counterparty risk. As a result, they are inaccessible to most users and lack the transparency and composability that define DeFi.

On-chain alternatives have so far failed to reach scale. They are often difficult to use, designed for professional traders, or constrained by low liquidity and rigid execution models.

These limitations show a clear gap: DeFi still lacks a scalable way to capture volatility yield on-chain.

Why Previous Approaches Failed

• Complexity: Most DeFi options protocols are built for sophisticated traders.

• Illiquidity: Markets are fragmented and not composable with the broader DeFi ecosystem.

• Counterparty Risk: OTC models require users to hand over collateral, introducing high counterparty exposure.

• Low Automation: Pricing and execution remain manual and slow.

• Unsustainable Models: DOVs proved user demand but could not scale due to pooled risk and rigid design.

The Opportunity

Structured products using options strategies are a proven way to turn volatility into income. DeFi lacks an accessible, customizable, and fully on-chain framework for these products, one that brings volatility yield to everyone with the benefits of composability, transparency, and automation.